TBI Takeover, (merged)

[Turn It Off]

Anybody heard much about the TBI Buy-out offer? Apparently somebody has made an offer and shares have risen. ( According to financial times ).

Unfortunately thats all i've heard .

[FlyboyUK]

I found this announcement dated 18th November :

TBI PLC
18 November 2004

18 November 2004



TBI plc ('TBI' or the 'Company')

The Board of TBI notes the recent share price movement and can confirm that it
has received a preliminary approach which may or may not lead to an offer for
the entire issued and to be issued share capital of the Company. Discussions
are at a preliminary stage and there can be no assurances that agreement can be
reached.


A further announcement will be made when appropriate.

[serko]

TBI looks set to be taken over by AENA the spanish airports group. This coudl mean that they can offer extra incentives for carriers flying to spanish airports from Luton, Cardiff, Belfast etc.

Does this mean they will offer cheaper deals and loco's will shift business to these airports?

[ClickRich]

As I was heading out the door this morning, BBC Breakfast News was announcing that TBI has agreed a takeover by a Spanish Construction company. Reuters are reporting it is Abertis. Bloomberg are more specific about it being Airport Concessions and Development Limited which is 90% owned by Abertis and 10% by AENA, the state owned (I think) operator of Spanish airports.

At first I presumed the BBC meant Ferrovial which would have been interesting. Anyway, it's not, but is still interesting- I don't know much about Abertis.

[pipertommy]

Do they own Bristol airport? I am sure it was a spanish company bought them a few years back. Please tell me it`s not.:eek:

[Powerjet1]

This seems to be the case.

Spain's Abertis, Aena in agreed 551.3 mln stg bid for UK's TBI - UPDATE


LONDON (AFX) - Spain's Abertis Infraestructuras SA and the Spanish airport authority Aena Desarrollo Internacional SAU have launched an all-cash offer for TBI PLC, valuing the UK airport group at 92.5 pence per share or 551.3 mln stg.

The unit formed for the bid is 90 pct owned by Abertis, while the remaining 10 pct is held by Aena.

The boards of both companies have agreed on the terms of the bid, which also includes a loan note alternative, they said in a statement.

Directors of TBI, which runs the London Luton airport, will "unanimously" recommend the bid to the group's shareholders, it said.

TBI directors and shareholders who hold 29.16 pct of the company have already committed to accept the offer and holders of a further 10.23 pct have expressed their support and agreement to accept the deal in a letter.

"This offer is highly attractive for TBI's shareholders and employees," said TBI chief executive Keith Brooks. "Shareholders will benefit from a cash offer that represents a full and fair value."

As part of the agreement, TBI has cancelled the 0.7 pence interim dividend it declared on Nov 16. It will restore the dividend should the bid lapse or be withdrawn.

A spokesman at Abertis said: "The acquisition of TBI is an important step in the development of Abertis' position as a leading European infrastructure operator."

"(It) will provide our airport business with critical mass and is a further step towards our strategy of expanding across the whole range of infrastructure businesses," he said.

TBI also operates the Belfast International and Cardiff International airports in the UK, the Stockholm Skavsta in Sweden, Orlando Sanford in the US and three major Bolivian airports.

[eastern wiseguy]

p t ...You are thinking of Ferrovial...owners of Belfast City airport..

[brabazon]

pipertommy

No, Bristol is jointly owned by Ferrovial and Macquarie Bank.

[pipertommy]

Thats a relief!Thought it become a housing estate over night!Thanks.:O So is this a good move for the development the airports within this group? ie do they invest.

[VIKING9]

all staff to learn Spanish and own property abroad

[ClickRich]

Well, as they have the heritage of airport operation (particularly AENA) you can be sure they won't be asset strippers. Also, a construction company's risk profile is likely to be fairly long term and their shareholders wouldn't expect any short termism.

I'd say they're investing to maximise the upside to existing plans.

[ebenezer]

From the Abertis website:

"Both Abertis and Aena consider that TBI represents an excellent opportunity. For Abertis, it means gaining greater weight in the airport business, strengthening its position as global manager of infrastructures.

For Aena it represents the broadening its interests in international airports.

In Europe, TBI has benefited from the significant increase of the low cost airlines. The number of passengers in this segment has increased to 10.8 million at September 2004, an increase of 12% on the previous year.

The main asset of TBI, London Luton airport, is located in one of the most important world markets in terms of annual air traffic. In this respect, London Luton will see this figure of travellers increase according to the forecasts as outlined in the White Paper on the Future of Air Traffic, prepared by the British Government, which signals congestion in other airports of the South-east of Britain.

The combination of experience in the airport sector of TBI, together with the experience of abertis in the management of infrastructures strengthened by its global presence and financial capacity, as well as the position of Aena as global operator of aeronautical infrastructures, guarantees continued growth of the airport business of TBI and will provide a platform for future investments in the sector.

Once the operation is closed, abertis and Aena will study the possibility of bringing into the consortium one or more financial partners, but only with a minority shareholding, as abertis will hold on to its majority position in this consortium.

Abertis

Abertis is the result of the merger in 2003 of Acesa and Áurea, which lead to one of the leading infrastructures groups in Europe.

The leading shareholders of abertis are “la Caixa”, leader in the financial sector, and ACS, group leader in the construction and services sector, with activities in infrastructure projects and concessions, including airports. Possible synergies between the TBI and the airport activities of ACS will be explored.

In addition to the highway business, abertis operates in other business segments that currently represent 15% of EBITDA –car parks, telecommunication infrastructures, airports and logistic services. In airports, abertis has an 85% shareholding in Codad, which holds the concession to operate El Dorado International Airport at Bogotá, Colombia, which has 69 percent of international flights to the country and 36 percent of the national flights.

Abertis also has significant international operations with shareholdings in Argentina, Chile, Colombia, Puerto Rico, Andorra, Italy, Portugal, United Kingdom, Morocco and South Africa. In the United Kingdom, abertis holds 25 percent of the operator R.M.G., owner of the shadow toll highway concessions of the A1-M (21 km) and the A419/417 (52 km).

Aena and Aena Internacional

Aena is the Spanish state operator of airports and the largest airport operator group in the world. It manages a network of 47 airports with a volume of 153 million passengers in 2003. It is also responsible for the operation of the Spanish air navigation system through seven air traffic control centres that control some 2.5 million movements every year.

Aena, through its international activities subsidiary, Aena Internacional, is involved in the management of sixteen airports in three different countries, which recorded a volume of 20 million passengars in 2003.

In air navigation, Aena Internacional plays an active role in the projects of the European Single Sky program, together with the main providers of European air navigation services.

In 2003, Aena had a turnover of 1,887 million euros, with EBIT (earnings before interests and taxes) of 209 million euros and aeronautical income in airports represented 38 and 39 percent of profit, respectively, in 2003."

Maybe at long last, this'll enable Luton to give BAA's London airports monopoly and Stansted in particular, the run for their money they justly deserve...

Damn good news if you ask me!!

:ok: :ok: :ok: :ok: :ok: :D :D :D

[Turn It Off]

Well,

TBI has been brought out, selling off all the companies airport concerns to a spanish company.

BBC News (http://news.bbc.co.uk/1/hi/wales/4037583.stm)

TIO

[ebenezer]

Take a look at the post "TBI Sold to Spanish Construction Company".

Looks like good news for TBI and its airports, and particularly good news for Luton!

;)

[ebenezer]

Does this mean they will offer cheaper deals and loco's will shift business to these airports

Probably - although Luton is hamstrung by a ridiculously uncompetitve concession agreement with the local council whereby it pays it for each airline passenger handled, with the result that TBI has difficulty matching deals elsewhere if it is to make a reasonable return from its Luton business.

However, if I was BAA and Stansted, I might now be just a little concerned...

:E

[Buster the Bear]

I understand that the operational aspects of the TBI take over will be managed by Aena (The Spanish airport operator). Abertis are providing the money, Aena therefore will be represented at Belfast, Cardiff and of course Luton. Aena is like a combined nationalised BAA & NATS, so they must know their stuff!

My guess is that if the concession agreement between Luton Borough Council and the new Luton operator can be extended, long-term infrastructure developments will occur, so the BAA may well be worried! Now will the surrounding airports, airspace and its procedures be able to cope with 'giant' Bedfordshire airport in an equitable manner, I am sure that Aena will be 'on the ball' here? Some interesting times ahead thinks Buster!

http://whipsnade.co.uk/picturelibrary/jpeg150/br/brown_bear_120_wide.jpg

[vintage ATCO]

I think I need to retire . . . :uhoh:

[CAP670]

Personally, I think that AENA, being something of an 'expert' in this field will put things under a spotlight. Hope all those charged with Luton's traffic & 'local' airspace management, etc., will have some credible answers ready...

Glad I'm not one of them!

Also glad that I don't have shares in BAA Stansted...

;)

[CAP670]

Absolutely!

BAA - eat your heart out...

:E

[Turn It Off]

I certainly hope it means some major work drumming up custom at Cardiff. Theres quite a good facility there and it seems to be doing not much all day every day.

[LTNman]

Probably - although Luton is hamstrung by a ridiculously uncompetitve concession agreement with the local council whereby it pays it for each airline passenger handled, with the result that TBI has difficulty matching deals elsewhere if it is to make a reasonable return from its Luton business.

Which didn't stop Barclays, TBI or this Spanish mob from buying in. TBI did state though that for big time investment they wanted the concession to last more than the present 30 years.

Luton council earned £12 million last year in payments from TBI and are spending their money wisely. Like the bus type shelter they installed in the town centre with a rubber floor for the town drunks to hang out in. It was never used by the local winoes and was actually installed in an alcohol free zone.

[Powerjet1]

I believe this has to be good news for all the uk airports in the group.

Belfast Int, Cardiff & Luton will now have considerable "financial muscle" from the extensive financial resources of Abertis, and expert airport management from Aena, who i'm sure will take an agressive stance against BAA, and other operators, to capture market share, once things settle down.

While perhaps Luton is probably regarded as the 'kingpin' of the uk group, because of its London connection, Belfast and Cardiff will see ample rewards no doubt, by way of infrastructure improvements and route growth.

Interesting times ahead methinks.

[ebenezer]

Luton Council earned £12 million last year in payments from TBI and are spending their money wisely. Like the bus type shelter they installed in the town centre with a rubber floor for the town drunks to hang out in....

Luton Borough Council (LBC) and its lacklustre officials have for 30 years, been an 'albatros' around the neck of Luton Airport.

If the Concession Agreement that Luton Airport's former mismanagers recommended to the Council's ignorant and incompetent councillors is such a brilliant idea, how come:

(i) no other local authority-owned airport in the UK has followed suit, and
(ii) Luton has until about three years ago, steadily fallen behind its rivals in attractiveness and facilities?

That LBC has spent its £12M wisely is doubtful; they squandered the income generated by Luton Airport throughout the 1970s, 1980s and 1990s which is why it lost business and came close to becoming a total 'has been'.

TBI has managed to turn its fortunes around and no doubt AENA will build even more aggresively on recent successes.

Unfortunately, LBC will continue to stand on the sidelines with its greedy hand outstretched, no doubt wasting further millions on other equally useless and mindless 'social' initiatives.

On the bright side, bet BAA will be in for a rude awakening...

;)

[LTNman]

I also think that the airport would be better off if the council had sold it. It nearly happened a few years back when the Tories were in charge of the council. They were about to sell it to Lockheed for small change just to get rid of it, as they didn’t realise the true value of the airport when the local elections put in a Labour council. They came up with the novel scheme to lease out the airport for 30 years. From the councils point of view this has been a wonderful success. With around 60,000 households in the town this £12,000,000 works out at an income of £200 per household. This income will only grow in years to come.

This deal is no different to buying or renting a house. Whether sold or rented money would still have to be paid out each year on loan repayments or rent. Also with the council keen on expanding the airport seeing they get a nice little earner, planning permission on medium sized projects doesn’t seem to be a problem.

[Powerjet1]

The men from Spain are on the move........


Spain's ACDL claims 62 pct of TBI after market purchases


LONDON (AFX) - Airport Concessions and Development Ltd (ACDL), the Spanish consortium that last week agreed a 551.3 mln stg (92-1/2 pence a share) recommended bid for TBI PLC, has strengthened its grip on the airport operator by purchasing shares in the market.

A notification to the Stock Exchange revealed ACDL, a partnership formed by Abertis Infraestructuras SA and Aena Desarrollo Internacional SAU, yesterday purchased 118.1 mln shares at 92-92.5 pence a share, taking its holding to 167.6 mln shares or 29.99 pct.

In addition ACDL has received indications of support for its bid in respect of a further 176.4 mln shares, representing 31.57 pct -- effectively giving the consortium control over 62 pct of TBI's equity.

TBI shares closed at 92-1/4 pence.